(1)Existing law establishes the Department of Food and Agriculture and requires it to promote and protect the agricultural industry of the state.

This bill would establish the Agricultural Growth Council, with a prescribed membership of specified state agencies and public members, to plan for regulatory alignments that would aid grower compliance, reduce costs to the agriculture industry, and protect the environment and to make recommendations for regulatory alignments to the proper agency or department. The bill would require the council, if the council determines that it is impossible for a person, and similarly situated persons, to comply with one or more regulations due to conflicting regulatory requirements, to suspend the application of one or more of the conflicting requirements to those persons as necessary to resolve the conflict. The bill would provide for the continued suspension of a requirement or requirements as to those persons until all applicable agencies have resolved the original conflict and provided clear direction on how to achieve compliance with the previously conflicting requirements.

The bill would require the department to create a user-friendly navigational link on its Internet Web site that provides farmers and other members of the agricultural industry comprehensive information about regulatory requirements, and guidance, for operating and managing a farm.

The bill would require the department to encourage community college districts, California state universities, the University of California, and state and county fairgrounds to establish and maintain smart farms, as described by the bill, on the respective campuses or fairgrounds to provide regional agricultural businesses the opportunity to show up-to-date agricultural technology, as defined by the bill, in real world practice.

(2)Existing law provides for a department of agriculture in each county and for the appointment of a county agricultural commissioner. The county agricultural commissioner has specified duties, including making an annual report to the Secretary of Food and Agriculture on the condition of agriculture in his or her county, attending the annual meeting of the California Agricultural Commissioners Association, and consulting with staff members of various federal departments.

This bill would require the county agricultural commissioner, in completing the annual report, to also conduct a survey of Internet accessibility on farms and in rural communities in his or her county to identify gaps in Internet accessibility on farms that create hurdles to the adoption of agricultural technology. By creating additional duties on local officials, this bill would impose a state-mandated local program.

(3)Existing law establishes the California Community Colleges, under the administration of the Board of Governors of the California Community Colleges, and the California State University as 2 of the segments of public postsecondary education in this state. Existing law, the Student Transfer Achievement Reform Act, requires community colleges to create associate degrees for transfer that meet the requirements of approved transfer model curricula, which are developed and vetted through a process known as the Course Identification Numbering System process. Existing law requires the California State University to guarantee, to a student holding a transfer model curriculum-aligned associate degree for transfer, admission to a corresponding program or major and concentration, as specified, of the California State University.

This bill would require the Board of Governors of the California Community Colleges to direct the statewide Academic Senate for California Community Colleges to engage in the Course Identification Numbering System process to explore the feasibility of developing, within established transfer model curricula for agricultural disciplines, a model curriculum in the subdiscipline of Agricultural Business and Technology that focuses on agricultural technology.

(4)The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws.

This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2020, and before January 1, 2025, in an amount, as specified, for agricultural technology deployed for at least 3 consecutive months during the taxable year. The bill would establish the Agriculture Technology Innovation Institute within the Department of Food and Agriculture Agriculture, or as a part of another public entity that may otherwise be designated by an interagency agreement between the department and the public entity, to, among other things, administer these credits.

(5)Existing law creates the Employment Development Department within the Labor and Workforce Development Agency, which is vested with the duties, purposes, responsibilities, and jurisdiction regarding job creation activities.

This bill would require express the intent of the Legislature, Legislature to include in the annual Budget Act, to appropriate Act an appropriation of moneys to the Labor Market Information Division within the Employment Development Department for the purpose of performing agricultural industry statistical analysis and examining the economic impact and employment effect the agricultural industry has on the state.

(6)This bill would appropriate express the intent of the Legislature to include in the Budget Act of 2019, or annually in the Budget Act, as provided, appropriations in specified amounts from the General Fund for specified purposes relating to agriculture.

(7)The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

(1)Existing law establishes the Department of Food and Agriculture and requires it to promote and protect the agricultural industry of the state.

This bill would establish the Agricultural Growth Council, with a prescribed membership of specified state agencies and public members, to plan for regulatory alignments that would aid grower compliance, reduce costs to the agriculture industry, and protect the environment and to make recommendations for regulatory alignments to the proper agency or department. The bill would require the council, if the council determines that it is impossible for a person, and similarly situated persons, to comply with one or more regulations due to conflicting regulatory requirements, to suspend the application of one or more of the conflicting requirements to those persons as necessary to resolve the conflict. The bill would provide for the continued suspension of a requirement or requirements as to those persons until all applicable agencies have resolved the original conflict and provided clear direction on how to achieve compliance with the previously conflicting requirements.

The bill would require the department to create a user-friendly navigational link on its Internet Web site that provides farmers and other members of the agricultural industry comprehensive information about regulatory requirements, and guidance, for operating and managing a farm.

The bill would require the department to encourage community college districts, California state universities, the University of California, and state and county fairgrounds to establish and maintain smart farms, as described by the bill, on the respective campuses or fairgrounds to provide regional agricultural businesses the opportunity to show up-to-date agricultural technology, as defined by the bill, in real world practice.

(2)Existing law provides for a department of agriculture in each county and for the appointment of a county agricultural commissioner. The county agricultural commissioner has specified duties, including making an annual report to the Secretary of Food and Agriculture on the condition of agriculture in his or her county, attending the annual meeting of the California Agricultural Commissioners Association, and consulting with staff members of various federal departments.

This bill would require the county agricultural commissioner, in completing the annual report, to also conduct a survey of Internet accessibility on farms and in rural communities in his or her county to identify gaps in Internet accessibility on farms that create hurdles to the adoption of agricultural technology. By creating additional duties on local officials, this bill would impose a state-mandated local program.

(3)Existing law establishes the California Community Colleges, under the administration of the Board of Governors of the California Community Colleges, and the California State University as one 2 of the segments of public postsecondary education in this state. Existing law authorizes the establishment of community college districts under the administration of community college governing boards, and authorizes these districts to provide instruction at community college campuses throughout the state. Existing law, the Student Transfer Achievement Reform Act, requires community colleges to create associate degrees for transfer that meet the requirements of approved transfer model curricula, which are developed and vetted through a process known as the Course Identification Numbering System process. Existing law requires the California State University to guarantee, to a student holding a transfer model curriculum-aligned associate degree for transfer, admission to a corresponding program or major and concentration, as specified, of the California State University.

This bill would require the Board of Governors of the California Community Colleges to develop a direct the statewide Academic Senate for California Community Colleges to engage in the Course Identification Numbering System process to explore the feasibility of developing, within established transfer model curricula for agricultural disciplines, a model curriculum in the subdiscipline of Agricultural Business and Technology Program or similar program that may be adopted by the community college districts and offered to its students, as specified. that focuses on agricultural technology.

(4)The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws.

This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2020, and before January 1, 2025, in an amount, as specified, for agricultural technology deployed for at least 3 consecutive months during the taxable year. The bill would establish the Agriculture Technology Innovation Institute within the Department of Food and Agriculture to, among other things, administer these credits.

(5)Existing law creates the Employment Development Department within the Labor and Workforce Development Agency, which is vested with the duties, purposes, responsibilities, and jurisdiction regarding job creation activities.

This bill would require the Legislature, in the annual Budget Act, to appropriate moneys to the Labor Market Information Division within the Employment Development Department for the purpose of performing agricultural industry statistical analysis and examining the economic impact and employment effect the agricultural industry has on the state.

(6)This bill would appropriate specified amounts from the General Fund for specified purposes relating to agriculture.

(7)The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

(1)Existing law establishes the Department of Food and Agriculture and requires it to promote and protect the agricultural industry of the state.

This bill would establish the Agricultural Growth Council, with a prescribed membership of specified state agencies and public members, to plan for regulatory alignments that would aid grower compliance, reduce costs to the agriculture industry, and protect the environment and to make recommendations for regulatory alignments to the proper agency or department. The bill would require the council, if the council determines that it is impossible for a person, and similarly situated persons, to comply with one or more regulations due to conflicting regulatory requirements, to suspend the application of one or more of the conflicting requirements to those persons as necessary to resolve the conflict. The bill would provide for the continued suspension of a requirement or requirements as to those persons until all applicable agencies have resolved the original conflict and provided clear direction on how to achieve compliance with the previously conflicting requirements.

The bill would require the department to create a user-friendly navigational link on its Internet Web site that provides farmers and other members of the agricultural industry comprehensive information about regulatory requirements, and guidance, for operating and managing a farm.

The bill would require the department to encourage community college districts, California state universities, the University of California, and state and county fairgrounds to establish and maintain smart farms, as described by the bill, on the respective campuses or fairgrounds to provide regional agricultural businesses the opportunity show up-to-date agricultural technology, as defined by the bill, in real world practice.

(2)Existing law provides for a department of agriculture in each county and for the appointment of a county agricultural commissioner. The county agricultural commissioner has specified duties, including making an annual report to the Secretary of Food and Agriculture on the condition of agriculture in his or her county, attending the annual meeting of the California Agricultural Commissioners Association, and consulting with staff members of various federal departments.

This bill would require the county agricultural commissioner, in completing the annual report, to also conduct a survey of Internet accessibility on farms and in rural communities in his or her county to identify gaps in Internet accessibility on farms that create hurdles to the adoption of agricultural technology. By creating additional duties on local officials, this bill would impose a state-mandated local program.

(3)Existing law establishes the California Community Colleges, under the administration of the Board of Governors of the California Community Colleges, as one of the segments of public postsecondary education in this state. Existing law authorizes the establishment of community college districts under the administration of community college governing boards, and authorizes these districts to provide instruction at community college campuses throughout the state.

This bill would require the Board of Governors to develop a model Agricultural Business and Technology Program or similar program that may be adopted by the community college districts and offered to its students, as specified.

(4)The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws.

This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2020, and before January 1, 2025, in an amount, as specified, for agricultural technology deployed for at least 3 consecutive months during the taxable year. The bill would establish the Agriculture Technology Innovation Institute within the Department of Food and Agriculture to, among other things, administer these credits.

(5)Existing law creates the Employment Development Department within the Labor and Workforce Development Agency, which is vested with the duties, purposes, responsibilities, and jurisdiction regarding job creation activities.

This bill would require the Legislature, in the annual Budget Act, to appropriate moneys to the Labor Market Information Division within the Employment Development Department for the purpose of performing agricultural industry statistical analysis and examining the economic impact and employment effect the agricultural industry has on the state.

(6)This bill would appropriate specified amounts from the General Fund for specified purposes relating to agriculture.

(7)The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

(1)Existing law establishes the Department of Food and Agriculture and requires it to promote and protect the agricultural industry of the state.

This bill would establish the Agricultural Growth Council, with a prescribed membership of specified state agencies and public members, to plan for regulatory alignments that would aid grower compliance, reduce costs to the agriculture industry, and protect the environment and to make recommendations for regulatory alignments to the proper agency or department.

This bill would require the department to create a user-friendly navigational link on its Internet Web site that provides farmers and other members of the agricultural industry comprehensive information about regulatory requirements, and guidance, for operating and managing a farm.

This bill would require the department to encourage community college districts, California state universities, the University of California, and state and county fairgrounds to establish and maintain smart farms, as described by the bill, on the respective campuses or fairgrounds to provide regional agricultural businesses the opportunity show up-to-date agricultural technology, as defined by the bill, in real world practice.

(2)Existing law provides for a department of agriculture in each county and for the appointment of a county agricultural commissioner. The county agricultural commissioner has specified duties, including making an annual report to the Secretary of Food and Agriculture on the condition of agriculture in his or her county, attending the annual meeting of the California Agricultural Commissioners Association, and consulting with staff members of various federal departments.

This bill would require the county agricultural commissioner, in completing the annual report, to also conduct a survey of Internet accessibility on farms and in rural communities in his or her county to identify gaps in Internet accessibility on farms that create hurdles to the adoption of agricultural technology. By creating additional duties on local officials, this bill would impose a state-mandated local program.

(3)Existing law establishes the California Community Colleges, under the administration of the Board of Governors of the California Community Colleges, as one of the segments of public postsecondary education in this state. Existing law authorizes the establishment of community college districts under the administration of community college governing boards, and authorizes these districts to provide instruction at community college campuses throughout the state.

This bill would require the Board of Governors to develop a model Agricultural Business and Technology Program or similar program that may be adopted by the community college districts and offered to its students, as specified.

(4)The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws.

This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2020, and before January 1, 2025, in an amount, as specified, for agricultural technology deployed for at least 3 consecutive months during the taxable year. The bill would establish the Agriculture Technology Innovation Institute within the Department of Food and Agriculture to, among other things, administer these credits.

(5)Existing law creates the Employment Development Department within the Labor and Workforce Development Agency, which is vested with the duties, purposes, responsibilities, and jurisdiction regarding job creation activities.

This bill would require the Legislature, in the annual Budget Act, to appropriate moneys to the Labor Market Information Division within the Employment Development Department for the purpose of performing agricultural industry statistic statistical analysis and examining the economic impact and employment effect the agricultural industry has on the state.

(6)This bill would appropriate specified amounts from the General Fund for specified purposes relating to agriculture.

(7)The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

(1)Existing law establishes the Department of Food and Agriculture and requires it to promote and protect the agricultural industry of the state.

This bill would establish the Growth Council Initiative, Agricultural Growth Council, with a prescribed membership of specified state agencies and public members, to plan for regulatory alignments that would aid grower compliance, reduce costs to the agriculture industry, and protect the environment and to make recommendations for regulatory alignments to the proper agency or department.

This bill would require the department to create a user-friendly navigational link on its Internet Web site that provides farmers and other members of the agricultural industry comprehensive information about regulatory requirements of, and guidance to, requirements, and guidance, for operating and managing a farm.

This bill would require the department to encourage community college districts, California state universities, the University of California, and state and county fairgrounds to establish and maintain smart farms, as described by the bill, on the respective campuses or fairgrounds to provide regional agricultural businesses the opportunity show up-to-date agricultural technology, as defined by the bill, in real world practice.

(2)Existing law provides for a department of agriculture in each county and for the appointment of a county agricultural commissioner. The county agricultural commissioner has several duties specified duties, including making an annual report to the Secretary of Food and Agriculture on the condition of agriculture in his or her county, attending the annual meeting of the California Agricultural Commissioners Association, and consulting with staff members of various federal departments.

This bill would require the county agricultural commissioner, in completing the annual report, to also conduct a survey of Internet accessibility on farms and in rural communities in his or her county to identify gaps in Internet accessibility on farms that create hurdles to the adoption of agricultural technology. By creating additional duties on local officials, this bill would impose a state-mandated local program.

(3)Existing law establishes the California Community Colleges, under the administration of the Board of Governors of the California Community Colleges, as one of the segments of public postsecondary education in this state. Existing law authorizes the establishment of community college districts under the administration of community college governing boards, and authorizes these districts to provide instruction at community college campuses throughout the state.

This bill would require the Board of Governors to develop a model Agricultural Business and Technology Program or similar program that may be adopted by the community college districts and offered to its students, as specified.

(4)The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws.

This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2019, 2020, and before January 1, 2025, in an amount, not to exceed an unspecified limit, that is otherwise equal to ____% of the amount paid or incurred as specified, for agricultural technology deployed for at least 3 consecutive months during the taxable year. The bill would establish the Agriculture Technology Innovation Institute within the Department of Food and Agriculture to, among other things, administer these credits.

(5)Existing law creates the Employment Development Department within the Labor and Workforce Development Agency, which is vested with the duties, purposes, responsibilities, and jurisdiction regarding job creation activities.

This bill would require the Legislature, in the annual Budget Act, to appropriate moneys to the Labor Market Information Division within the Employment Development Department for the purpose of performing agricultural industry statistic analysis and examining the economic impact and employment effect the agricultural industry has on the state.

(6)This bill would make an unspecified appropriation appropriate specified amounts from the General fund Fund for the specified purposes of agriculture, to be allocated as provided. relating to agriculture.

(1)Existing law establishes the Department of Food and Agriculture and requires it to promote and protect the agricultural industry of the state.

This bill would establish the Growth Council Initiative, with a prescribed membership of specified state agencies and public members, to plan for regulatory alignments that would aid grower compliance, reduce costs to the agriculture industry, and protect the environment and to make recommendations for regulatory alignments to the proper agency or department.

This bill would require the department to create a user-friendly navigational link on its Internet Web site that provides farmers and other members of the agricultural industry comprehensive information about regulatory requirements of, and guidance to, operating and managing a farm.

This bill would require the department to encourage community college districts, California state universities, the University of California, and state and county fairgrounds to establish and maintain smart farms, as described by the bill, on the respective campuses or fairgrounds to provide regional agricultural businesses the opportunity show up-to-date agricultural technology, as defined by the bill, in real world practice.

(2)Existing law provides for a department of agriculture in each county and for the appointment of a county agricultural commissioner. The commissioner has several duties including making an annual report to the Secretary of Food and Agriculture on the condition of agriculture in his or her county, attending the annual meeting of the California Agricultural Commissioners Association, and consulting with staff members of various federal departments.

This bill would require the commissioner, in completing the annual report, to also conduct a survey of Internet accessibility on farms and in rural communities in his or her county to identify gaps in Internet accessibility on farms that create hurdles to the adoption of agricultural technology. By creating additional duties on local officials, this bill would impose a state-mandated local program.

(3)Existing law establishes the California Community Colleges, under the administration of the Board of Governors of the California Community Colleges, as one of the segments of public postsecondary education in this state. Existing law authorizes the establishment of community college districts under the administration of community college governing boards, and authorizes these districts to provide instruction at community college campuses throughout the state.

This bill would require the Board of Governors to develop a model Agricultural Business and Technology Program or similar program that may be adopted by the community college districts and offered to its students, as specified.

(4)The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws.

This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2019, in an amount, not to exceed an unspecified limit, that is otherwise equal to ____% of the amount paid or incurred for agricultural technology deployed for at least 3 consecutive months during the taxable year. The bill would establish the Agriculture Technology Innovation Institute within the Department of Food and Agriculture to, among other things, administer these credits.

(5)Existing law creates the Employment Development Department within the Labor and Workforce Development Agency, which is vested with the duties, purposes, responsibilities, and jurisdiction regarding job creation activities.

This bill would require the Legislature, in the annual Budget Act, to appropriate moneys to the Labor Market Information Division within the Employment Development Department for the purpose of performing agricultural industry statistic analysis and examining the economic impact and employment effect the agricultural industry has on the state.

(6)The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

(7)This bill would make an unspecified appropriation from the General fund for the purposes of agriculture, to be allocated as provided.

Date of Hearing: May 16, 2018

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez Fletcher, Chair

ABPCA Bill Id:AB 2166

Author:(Caballero) – As Amended Ver:May 9, 2018

Urgency: No State Mandated Local Program: Yes Reimbursable: Yes

SUMMARY:

This bill enacts the California Farm Bill to promote the adoption of agricultural technology (ag tech), as defined, and to increase funding for specified state programs. Specifically, this bill:

1. Creates a Personal Income Tax (PIT) and Corporation Tax (CT) credit for the deployment of agricultural technology (ag tech), as defined. The credit, available for tax years 2020 through 2024, is worth $50 per acre (up to $4,950) for farms less than 99 acres, $40 per acre (up to $19,960) for farms that are 100 to 499 acres, $40 per acre (up to $29,970) for farms that are 500 to 999 acres, $20 per acre ($39,980) for farms that are 1000 to 1999 acres, and $10 per acre (up to $50,000) for farms that are 2000 or more acres.
2. Establishes the Agriculture Technology Innovation Institute (ATII) within the California Department of Food and Agriculture (CDFA), or within another department, to promote the use of ag tech and to certify eligible participants in the tax credit program.
3. Establishes the Agricultural Growth Council to plan for regulatory alignments that would aid compliance and reduce costs to the agricultural industry.
4. Requires the Board of Governors of the California Community Colleges (CCCs) to direct the statewide Academic Senate for CCCs to explore feasibility of developing model curricula for agricultural disciplines, including a focus on ag tech.
5. Requires county agricultural commissioners (CACs) to conduct a survey of internet accessibility on farms and in rural counties to identify gaps in internet accessibility on farms that create hurdles to the adoption of ag tech.
6. States that it is the intent of the Legislature to include in the Budget Act of 2019, the following General Fund (GF) appropriations: $1.5 million to CDFA’s Buy California program, $45 million to CDFA’s Plant Pest Prevention Management Program, $1.5 million to CDFA for a regulatory information website, $20 million to implement ATII, $500,000 to CDFA to support the proposed Agricultural Growth Council, $10 million (ongoing) to the University of California’s Division of Agriculture and Natural Resources, and $150,000 to Olinga Learning’s Wings of Knowledge Initiative.

FISCAL EFFECT:

1. Annual GF revenue loss of in the tens of millions of dollars each year as a result of the proposed ag tech tax credit.
2. Significant one-time costs, of up to $20.5 million GF for CDFA, or another unspecified state department, to start ATII and the Agricultural Growth Council. AB 2166 states that it is the intent of the Legislature to appropriate this amount in the Budget Act of 2019. In each year thereafter, it is likely ongoing costs will be in the hundreds of thousands of dollars.
3. One-time costs of $1.5 million GF for CDFA to develop a website that provides information about regulatory requirements and guidance for operating and managing a farm. AB 2166 states that it is the intent of the Legislature to appropriate this amount in the Budget Act of 2019.
4. Unknown one-time reimbursable costs, possibly in excess of the $700,000, for CACs to conduct a survey of internet accessibility on farms. This assumes that it costs each rural CAC at least $20,000 to conduct their respective surveys.
5. A one-time GF appropriation of $46.5 million to other specified CDFA programs or organizations and $10 million ongoing to the University of California’s Division of Agriculture and Natural Resources. AB 2166 states that it is the intent of the Legislature to appropriate these amounts in the Budget Act of 2019 and, in the case of the ongoing $10 million to the Division of Agriculture and Natural Resources, in each Budget Act thereafter.

COMMENTS:

1. Purpose. According to the author’s office, AB 2166 will develop a statewide food and agriculture innovation eco system. AB 2166 is intended as an omnibus bill that encourages the adoption of ag tech by farms of all sizes, creates a multi-agency entity to streamline conflicting regulations, funds CDFA programs that remain underfunded, and develops educational pathways into ag tech employment opportunities.
2. Tax credit program. AB 2166 creates a tax credit program to promote the development of ag tech. As drafted, the proposed credit program lacks important details that would allow the bill to be implemented effectively and efficiently. A lack of clarity around what type of businesses are eligible and a broad definition of ag tech means that AB 2166 is likely to produce significant windfall benefits for agricultural producers already using this technology. Moreover, this bill allows farmers to keep claiming the credit for their continued use of these technologies. Given that one stated intent of this credit is to help farmers overcome the initial upfront costs of using ag tech, the bill should be amended to clarify that the credit is available only for the first-time adoption of these technologies.
3. New CCC focus on ag tech. AB 2166 requires the development of an ag tech curricula for CCCs. The implication of this requirement is an eventual bolstering of CCC programs in this area. However, the state provided $200 million ongoing Proposition 98 funding beginning in 2016-17 for the Strong Workforce Program, and an additional $248 million ongoing was added in 2017-18. Regional consortia of CCCs receive these funds and are required to direct funds in one or more of 10 industry sectors. One such sector includes agriculture, water, and environmental technologies. It is unclear if this new curricula would overlap with this program.
4. Amendments. Recent author amendments to AB 2166 put additional caps on the amount of tax credits that may be received by taxpayers and clarified that it is the intent of the Legislature to appropriate funds through the budget act for specified purposes.

Analysis Prepared by: Luke Reidenbach / APPR. / (916) 319-2081

Date of Hearing: May 9, 2018

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez Fletcher, Chair

ABPCA Bill Id:AB 2166

Author:(Caballero) – As Amended Ver:April 26, 2018

Urgency: No State Mandated Local Program: Yes Reimbursable: Yes

SUMMARY:

This bill enacts the California Farm Bill to promote the adoption of agricultural technology (ag tech), as defined, and to increase funding for specified state programs. Specifically, this bill:

1. Creates a Personal Income Tax (PIT) and Corporation Tax (CT) credit for the deployment of agricultural technology (ag tech), as defined. The credit, available for tax years 2020 through 2024, is worth $50 per acre for farms less than 99 acres, $40 per acre for farms that are 100 to 499 acres, $40 per acre for farms that are 500 to 999 acres, $20 per acre for farms that are 1000 to 1999 acres, and $10 per acre for farms that are 2000 or more acres. The credit cannot exceed $50,000.
2. Establishes the Agriculture Technology Innovation Institute (ATII) within the California Department of Food and Agriculture (CDFA) to promote the use of ag tech and to certify eligible participants in the tax credit program.
3. Establishes the Agricultural Growth Council within CDFA to plan for regulatory alignments that would aid compliance and reduce costs to the agricultural industry.
4. Requires the Board of Governors of the California Community Colleges (CCCs) to direct the statewide Academic Senate for CCCs to explore feasibility of developing model curricula for agricultural disciplines, including a focus on ag tech.
5. Requires county agricultural commissioners (CACs) to conduct a survey of internet accessibility on farms and in rural counties to identify gaps in internet accessibility on farms that create hurdles to the adoption of ag tech.
6. Allocates $78.7 million General Fund (GF) to various programs and organizations, including $1.5 million to CDFA’s Buy California program, $45 million to CDFA’s Plant Pest Prevention Management Program, $1.5 million to CDFA for a regulatory information website, $20 million to implement ATII, $500,000 to CDFA to support the proposed Agricultural Growth Council, $10 million ongoing to the University of California’s Division of Agriculture and Natural Resources, and $150,000 to Olinga Learning’s Wings of Knowledge Initiative.

FISCAL EFFECT:

1. Annual GF revenue loss of $86 million in 2019-20 and $170 million in 2020-21 as a result of the proposed ag tech tax credit.
2. Significant one-time costs, of up to $20.5 million GF for CDFA to start ATII and the Agricultural Growth Council. AB 2166 appropriates this amount for this purpose. In each year thereafter, it is likely ongoing costs will be in the hundreds of thousands of dollars.
3. One-time costs of $1.5 million GF for CDFA to develop a website that provides information about regulatory requirements and guidance for operating and managing a farm. AB 2166 appropriates this amount for this purpose.
4. Unknown one-time reimbursable costs, possibly in excess of the $700,000, for CACs to conduct a survey of internet accessibility on farms. This assumes that it costs each rural CAC at least $20,000 to conduct their respective surveys.
5. A one-time GF appropriation of $46.5 million to other specified CDFA programs or organizations and $10 million ongoing to the University of California’s Division of Agriculture and Natural Resources.

COMMENTS:

1. Purpose. According to the author’s office, AB 2166 will develop a statewide food and agriculture innovation eco system. AB 2166 is intended as an omnibus bill that encourages the adoption of ag tech by farms of all sizes, creates a multi-agency entity to streamline conflicting regulations, funds CDFA programs that remain underfunded, and develops educational pathways into ag tech employment opportunities.
2. Tax credit program. AB 2166 creates a tax credit program to promote the development of ag tech. As drafted, the proposed credit program lacks important details that would allow the bill to be implemented effectively and efficiently. A lack of clarity around what type of businesses are eligible and a broad definition of ag tech means that AB 2166 is likely to produce significant windfall benefits for agricultural producers already using this technology. Moreover, this bill allows farmers to keep claiming the credit for their continued use of these technologies. Given that one stated intent of this credit is to help farmers overcome the initial upfront costs of using ag tech, the bill should be amended to clarify that the credit is available only for the first-time adoption of these technologies.
3. New CCC focus on ag tech. AB 2166 requires the development of an ag tech curricula for CCCs. The implication of this requirement is an eventual bolstering of CCC programs in this area. However, the state provided $200 million ongoing Proposition 98 funding beginning in 2016-17 for the Strong Workforce Program, and an additional $248 million ongoing was added in 2017-18. Regional consortia of CCCs receive these funds and are required to direct funds in one or more of 10 industry sectors. One such sector includes agriculture, water, and environmental technologies. It is unclear if this new curricula would overlap with this program.

Analysis Prepared by: Luke Reidenbach / APPR. / (916) 319-2081

Date of Hearing: April 24, 2018

ASSEMBLY COMMITTEE ON HIGHER EDUCATION

Jose Medina, Chair

ABPCA Bill Id:AB 2166 (

Author:Caballero) – As Amended Ver:April 16, 2018

SUBJECT: California Farm Bill: agricultural technology.

SUMMARY: Requires the California Community Colleges (CCC) Board of Governors (BOG) to develop a model Agricultural Business and Technology Program, as specified; requires the County Agriculture commissioner (CAC) to also conduct a survey of internet accessibility in their county to identify gaps in internet accessibility on farms, as specified; establishes the Agriculture Growth Council (AGC), as specified, to plan for regulatory streamlining for the agricultural industry; allows a tax credit for deployment of agricultural technology, as specified; and, appropriates specified amounts from the General Fund (GF) for various agriculture related programs with the California Department of Food and Agriculture (CDFA) and the University of California (UC). Specifically, in part, this bill:

1. Makes the following Legislative findings and declarations:
   1. For sustainable growth, rural communities need to be able to keep their youth employed at home, or to have those youth return to their communities after attending college; and,
   2. Rural communities benefit when their youth have adequate jobs after high school that provide living wages without college degrees.
2. Declares this law shall be known as the California Farm Bill.
3. Requires the CCC BOG to develop a model Agricultural Business and Technology Program or similar program that may be adopted by community college districts and offered to its students.
4. Requires that the program developed in (2) encourage entry and provide career pathways into the agricultural technology industry and be based upon already existing programs such as the Agriculture Business Technology Program at Hartnell College, located in the City of Salinas, or the Agriculture Science Technology Program at West Hills College Coalinga, located in the City of Coalinga.
5. Defines “Agricultural technology” as technology that improves the efficiency of water use, energy use, greenhouse gases, fertilizer use, or pesticide use, or that automates a part of the farming process to make farmworkers more efficient.
6. Establishes the AGC in state government; requires that the AGC consist of the Secretary of Food and Agriculture, the Secretary of the Natural Resources Agency, the Secretary of Environmental Protection, the Director of Water Resources, the Director of the State Water Resources Control Board, the Chair of the Air Resources Board, the Director of Pesticide Regulation, one member of the public appointed by the Speaker of the Assembly, one member of the public appointed by the Senate Committee on Rules, and one member of the public appointed by the Governor. The public members shall have a background in agriculture.
7. Specifies the purpose of the AGC is to plan for regulatory alignments that aid grower compliance, reduce costs to the agriculture industry, and protect the environment and to make recommendations for regulatory alignments to the proper agency or department.
8. Creates, for each taxable year beginning on or after January 1, 2020, and before January 1, 2025, a credit against the “net tax,” as defined, in an amount for each acre on which agricultural technology is deployed during the taxable year for at least three consecutive months as follows:
   1. For tier 1 farms, which are farms less than 100 acres in size, $50;
   2. For tier 2 farms, which are farms at least 100 acres but less than 500 acres in size, $40;
   3. For tier 3 farms, which are farms at least 500 acres but less than 1,000 acres in size, $30;
   4. For tier 4 farms, which are farms at least 1,000 acres but less than 2,000 acres in size, $20; and,
   5. For tier 5 farms, which are farms of 2,000 or more acres in size, $10 (specifies that the amount of credit for a tier 5 farm shall not exceed $50,000 per taxpayer per taxable year).
9. Makes appropriation from the GF as follows:
   1. $1.5 million to CDFA's Buy California program, as specified;
   2. $45 million to CDFA's Plant Pest Prevention Management Program;
   3. $1.5 million to CDFA to implement regulatory information website;
   4. $20 million to CDFA to implement CDFA's Agriculture Technology Innovation Institute (ATII);
   5. $500,000 to CDFA to support AGC in its purpose;
   6. $10 million annually to UC, division of Agriculture and Natural Resources for applied agriculture research; and,
   7. $150,000 to Olinga Learning's Wings of Knowledge Initiative.

EXISTING LAW:

1. Establishes the CCC, a postsecondary education system consisting of community college districts and the CCC BOG (Education Code (EC) Section 70900).
2. Requires the CCC BOG to provide leadership and direction in the continuing development of the CCC as an integral and effective element in the structure of public higher education in the state. Existing law also specifies the work of the BOG shall at all times be directed to maintaining and continuing, to the maximum degree permissible, local authority and control in the administration of the CCC (EC Section 70901).
3. Finds and declares all of the following:
   1. Agriculture is one of the most important industries in California, contributing over sixty-five billion dollars annually to the state’s economic activity;
   2. Agricultural education programs within the CCC system can, and do, play an important role in providing relevant workforce training as well as college and university transfer options for students;
   3. Among the purposes of the CCC Agriculture and Natural Resources Advisory Committee (ANRAC) is the development of recommendations for improving and enhancing community college agricultural education programs on a statewide basis; and,
   4. It is in the best interests of the public that programs in agricultural education that exist within the CCC system be measured annually against uniform, objective quality criteria indicators (EC 78017).
4. Requires the CCC ANRAC to identify and develop quality program criteria that may be used to uniformly evaluate the effectiveness of the agricultural education programs in community colleges throughout California. Requires that the criteria be developed in consultation with instructors, administrators, students, industry representatives, and other interested parties, and build upon the local program evaluation document previously developed by the ANRAC. Existing law also requires ANRAC to perform all of the aforementioned activities within the allotment of funding provided to ANRAC under the federal Carl D. Perkins Vocational and Technical Education Act (VTEA). Specifies that under no circumstances shall said activities result in a state operations request for General Fund support or displace any other VTEA-funded state operations activities within the CCC Chancellor's Office (EC 78017.3).

FISCAL EFFECT: Unknown

COMMENTS: Double referral. This bill was heard by the Assembly Committee on Agriculture; and passed out with a vote of 8-0 on April 11, 2018.

Need for the measure. According to the author, "Today, rural students in tech must pursue those careers outside of their home communities. Building educational pathways to new ag tech careers, managing data sensor networks in fields and precision, Internet guided farm equipment, requires new skills in the ag industry. A few pockets at the community college and higher education systems have embraced ag tech pathways, but this is not ubiquitous in regions of the state that economically depend on farming, ranching, and dairy-driven economies".

This bill, in part, requires the CCC BOG to develop a model Agriculture Business and Technology Program.

CCC Agriculture and Natural Resources Advisory Committee (ANRAC). The CCC ANRAC provides an impartial evaluation service to assist community colleges to improve the quality of agriculture and natural resources curriculum and programs at their own institution; raising the standards for agriculture/natural resource education across the state of California.

The CCC ANRAC program evaluation involves an intensive one – to three – day focused study of the program’s needs, capabilities, resources, strengths and weaknesses.  

Transfer Model Curriculum and Course Identification Numbering System (C-ID). In response to Senate Bill 1440 (Padilla), Chapter 428, Statutes of 2010, the Academic Senates for CCC and California State University (CSU) decided to develop a faculty-led, state-wide, concerted effort to identify the course content for new associate degrees for transfer, which simultaneously award students an associate degree and prepare them for special benefits/guarantees upon transfer to CSU.  The Course Identification Numbering System (C-ID) infrastructure is being used to develop and vet the transfer model curriculum (TMC) in each of the most common transfer majors.  Further, C-ID is being used to develop “descriptors” for all the courses in the TMCs, providing assurances to students and faculty that courses offered at one institution are comparable to those elsewhere, provided they have the same C-ID number.  Once a TMC has been drafted by intersegmental discipline faculty, it is vetted on the C-ID site where feedback is posted by a wider sampling of faculty.  Once finalized, TMCs become available for community colleges to use as they develop their associate degree for transfer.

To note, the Academic Senate for California Community Colleges (ASCCC), created the agriculture model curriculum, which is available on the C-ID. This curriculum is based, in part, on recommendations by the CCC ANRAC.

Committee Staff understands that the ASCCC utilized an extensive vetting process that appears to include all of the requirements listed in this measure, through either the creation and evaluation of model curriculum or in the process actions required for the Chancellor’s Office and colleges to utilize the curriculum.  According to the ASCCC, they generated C-IDs for a variety of agriculture courses to fill a need the faculty saw for ensuring CCC students have agriculture transfer pathways from a CCC to a CSU.

Revenue and taxation. This measure was not heard by the Assembly Committee on Revenue and Taxation; but there are revenue and taxation concerns that should be noted.

As presently drafted, this bill, for each taxable year, beginning on or after January 1, 2020, and not before January 1, 2025, specifies that there shall be allowed as a credit against the "net tax," as defined, and specified amount for each acre on which agricultural technology is deployed.

Committee Staff notes that the bill is silent as to whom the credit would be allowed. Additionally, the bill is silent as to whom is considered a "qualified taxpayer". Further, as the bill itemizes the tax credit structure, it does not consistently specify that each enumerated dollar amount is per acre; should there be a hard cap on the tier structure set forth in this bill?

The bill also requires the ATII, within the CDFA, to provide a certificate to a taxpayer who meets specified requirements as established in this bill. The purpose of the certificate is unclear; is it for the tax credit? Additionally, it is unclear if the California Franchise Tax Board (FTB) should receive a copy of each issued certificate; and if FTB receives a copy, the bill is silent as to how FTB would receive copies of issued certificates. Committee Staff understands that FTB has expressed concerns as to the structure of what the bill is asking to be included on the certificate; perhaps it may be better to explicitly specify what information is required on the certificate, providing a certified amount.

It is presently unclear if the structure of this bill creates a tax incentive or a tax reward. Should the bill be limited to original tax returns or should the bill allow for amendments for prior tax years? Additionally, as drafted, the bill would allow owners outside of California to receive the tax credit or incentive; should the bill be limited to ensure the tax credit or incentive is for Californians only?

Committee comments and amendments. As currently drafted the bill requires the CCC BOG to develop model curriculum.

Committee Staff notes that the creation of curriculum is in the purview of faculty.

Should the Legislature require the CCC BOG to create curriculum specific to agriculture and technology, especially when, as noted in the "TMC and C-ID" Section of this analysis, curriculum has already been created in the field of agriculture?

To note, career technical education programs require a local advisory committee with industry that may impact how curriculum is designed and implemented at the colleges.  The models presented from Hartnell and West Hills College Coalinga represents only two of the fifteen regions.

If the intent of the author is to establish model curriculum specific to agricultural business and technology, the author should amend the bill in order for the ASCCC to explore a proposal through the C-ID process, calling together agriculture factory and industry partners to design model curriculum flexible enough to serve statewide needs.

Committee Staff recommends, and the author has accepted, the following amendment:

78017.5. (a) The Board of Governors of the California Community Colleges shall develop a model Agriculture Business and Technology Program or similar program that may be adopted by community college districts and offered to its students.

(a)The Board of Governors of the California Community Colleges shall direct the state wide Academic Senate for California Community Colleges to engage the Course Identification Numbering System process to explore the creation of model curriculum in the sub-discipline of Agricultural Business and Technology.

(b) The model program shall encourage entry, and provide career pathways, into the agricultural technology industry and shall be based upon already existing programs such as the Agriculture Business Technology Program at Hartnell College, located in the City of Salinas, or the Agriculture Science Technology Program at West Hills College Coalinga, located in the City of Coalinga.

Committee Staff notes that this measure appropriates $150,000 from the GF, to Olinga Learning's Wings of Knowledge Initiative. Said initiative is a non-profit.

Should the Legislature authorize state dollars be appropriated to a non-profit?

REGISTERED SUPPORT / OPPOSITION:

Support

Almond Alliance of California

Association of California Egg Farmers

California Association of Winegrape Growers

California Association of Wheat Growers

California Bean Shippers Association

California Citrus Mutual

California Grain & Feed Association

California Pear Growers Association

California Seed Association

California State Floral Association

California Warehouse Association

Family Winemakers of California

Hartnell Community College District

Pacific Egg & Poultry Association

West Hills Community College District

Opposition

None on file.

Analysis Prepared by: Jeanice Warden / HIGHER ED. / (916) 319-3960

Date of Hearing: April 11, 2018

ASSEMBLY COMMITTEE ON AGRICULTURE

Anna Caballero, Chair

ABPCA Bill Id:AB 2166

Author:(Caballero) – As Amended Ver:April 2, 2018

SUBJECT: California Farm Bill: agricultural technology.

SUMMARY: This bill would require the Board of Governors of the California Community Colleges (Board of Governors) to develop a model Agricultural Business and Technology Program (AB&T Program), as specified; require the County Agriculture commissioner (CAC) to also conduct a survey of internet accessibility in their county to identify gaps in internet accessibility on farms, as specified; establish the Agriculture Growth Council (AGC), as specified, to plan for regulatory streamlining for the agricultural industry; allow a tax credit for deployment of agricultural technology, as specified.; and appropriate specified amounts from General Fund (GF) for various agriculture related programs with the California Department of Food and Agriculture (CDFA) and the University of California (UC). Specifically, this bill:

1. Declares this law shall be known as the California Farm Bill.
2. Requires the Board of Governors to develop a model AB&T Program, or similar program for use in California community colleges (CCC).
3. Requires the AB&T Program to encourage entry and pathways in the agricultural technology (ag tech) industry and requires the AB&T Program to be based on existing programs, as specified.
4. Defines ag tech to mean technology that improves efficiency water use, energy use, greenhouse gases, fertilizer use, or pesticide use or that automates a part of the farming process to make farm workers more efficient.
5. Requires CDFA to create a user-friendly navigational link on its internet web site that provides farmers and other members of the agricultural industry comprehensive information about regulatory requirements of, and guidance to, operating and managing a farm.
6. Establishes within CDFA, the Agriculture Technology Innovation Institute (ATII) which is required to do the following:
   1. Promote the use of ag tech by educating farmers about available ag tech and its advantages;
   2. Encourage the adoption of agricultural activities that qualify for a tax credit for deployment of ag tech; and,
   3. Administer the tax credit for deployment of ag tech.
7. Requires CDFA to encourage CCC districts, California state universities (CSU), UC, and state and county fairgrounds to establish and maintain smart farms to provide regional agricultural businesses the opportunity to show up-to-date ag tech in real world practice.
   1. Requires smart farm to be funded by its operator.
   2. Makes findings that smart farms serve the dual purpose of enabling adoption of up-to-date ag tech and creating a career pathway for jobs in the agricultural sector with a focus on technology. A smart farm would also provide the agricultural industry with the opportunity to experience applied ag tech research firsthand.
8. Requires CACs, in their annual report to CDFA on the condition of agriculture in their counties, to conduct a survey of internet accessibility on farms and in rural communities in their counties to identify gaps in internet accessibility on farms that create hurdles to the adoption of ag tech.
9. Establishes AGC to plan for regulatory alignments that would aid grower compliance, reduce costs to the agricultural industry, protect the environment, and make recommendations for regulatory alignments to the proper agency or department.
   1. Requires the membership of AGC to be the following:
      1. Secretary of CDFA;
      2. Secretary of the Natural Resources Agency;
      3. Secretary of Environmental Protection;
      4. Director of Water Resources;
      5. Director of the State Water Resources Control Board;
      6. Chair of the Air Resources Board; and,
      7. Three members of the public appointed by the Speaker of the Assembly, Senate Committee on Rules, and the Governor, respectively.
         1. Requires public members to have a background in agriculture.
   2. Requires AGC meetings to be subject to Bagley-Keen Open Meeting Act, as specified.
10. Allows a tax credit, starting after January 1, 2020 and before January 1, 2025, for deployment of ag tech per acre as follows:
    1. Fifty dollars ($50) per acre for farms less than 99 acres;
    2. Forty dollars ($40) per acre for farms that are 100 to 499 acres;
    3. Thirty dollars ($30) per acre for farms that are 500 to 999 acres;
    4. Twenty dollars ($20) per acre for farms that are 1000 to 1999 acres;
    5. Ten dollars ($10) per for farms that are 2000 or more acres, with a cap of a fifty thousand dollar ($50,000) tax credit, as specified.
    6. Makes the following definitions for the tax credit;
       1. Ag tech, to mean technology that reduces water use, energy use, greenhouse gases, fertilizer use, pesticide use, or that automates a part of the farming process to make farm workers more efficient.
       2. Institute to mean ATII.
    7. Requires ATII to provide a certificate to a taxpayer who confirms the following:
       1. The deployment of ag tech for at least three consecutive months;
       2. Paying or incurring expenses, during the 12 months immediately preceding the taxpayer’s application for certification, for the ag tech, as specified; and,
       3. One or both of the following:
          1. A reduction in water use, energy use, greenhouse gases, or soil amendment within the business operations of the taxpayer, resulting from the deployment of ag tech, demonstrated through metering, bill statements, or business logs or records; or,
          2. An increase in farm worker efficiency demonstrated by subtracting the quotient of the crop yield divided by hours of work performed before ag tech was deployed from the quotient of the crop yield divided by hours of work performed after that ag tech was deployed.
    8. Repeals the tax credit on January 1, 2032.
11. Requires the Legislature, in the annual Budget Act, to appropriate moneys to the Labor Market Information Division within the Employment Development Department for the purpose of performing agricultural industry statistical analysis and examining the economic impact and employment effect the agricultural industry has on the state.
12. Makes appropriation from the GF as follows:
    1. $1.5 million to CDFA's Buy California program, as specified.
    2. $45 million to CDFA's Plant Pest Prevention Management Program.
    3. $1.5 million to CDFA to implement regulatory information website.
    4. $20 million to CDFA to implement ATII.
    5. $500,000 to CDFA to support AGC in its purpose.
    6. $10 million annually to UC, division of Agriculture and Natural Resources (UCANR) for applied agriculture research.
    7. $150,000 to Olinga Learning's Wings of Knowledge Initiative.
    8. Requires Olinga Learning to report to the Legislature, before July 1, 2021, on its program.
       1. Requires the Legislature to evaluate whether the program is achieving its goals of providing students with an ag tech career pathway either directly into the field or into postsecondary education and whether similar programs should be implemented throughout the state.
       2. Makes legislative findings and declarations regarding rural communities and the need to keep youth in those communities, the benefits of having jobs for the youth, the benefits of programs such as the Wings of Knowledge Initiative in helping build careers in ag tech, and the help this appropriation would make in helping the Legislature evaluate programs designed to improve the economy of rural California in the long run.

EXISTING LAW:

1. Establishes CCC, under the administration of the Board of Governors of CCC , as one of the parts of public postsecondary education in this state.
   
2. Authorizes the establishment of community college districts under the administration of community college governing boards, and authorizes these districts to provide instruction at community college campuses throughout the state.
   
3. Provides for a department of agriculture in each county and for the appointment of a CAC. The commissioner has several duties, which include making an annual report to CDFA on the condition of agriculture in his or her county
   
4. Establishes CDFA and requires it to promote and protect the agricultural industry of the state.
   
5. Allow various credits against the taxes imposed by current tax laws.

FISCAL EFFECT: Unknown

COMMENTS:

Tax Credit to Spur Ag Technology Adoption

This bill strives to create economic incentives in the form of tax credits for the adoption of agricultural technology. Included (but not limited to) on-farm software that manage farm operations via data inputs from remote sensors, installing broadband networks to support agricultural technology applications, mechanization and automation technologies, and other technologies that increase on-farm efficiency, and are related to the state’s greenhouse gas reduction and other environmental goals.

The tax credit is tiered by size of a farming operation and on a per acre basis. The tiers are as follows: 1) farms less than 100 acres, 2) farms from 100 to 499 acres, 3) farms from 500 to 999 acres, 4) farms from 1,000 to 1,999 acers and 5) farms greater than 2,000 acres. The per acres credit starts at $50 per acre for the smallest farms (tier one) and decrease by $10 per acre per tier, so on farms greater than 2,000 acres the tax credit is $10 per acre. Furthermore, the tier five farms are limited to a maximum tax credit of $50,000 per tax payer per year.

According to the author, this tax credit will encourage adoption of ag tech on-farm. The tax credit is also weighted towards small and medium farms, as these operations usually have a more difficult time making capital improvements at their operations.

Agriculture Technology Innovation Institute

One of the issues with ag tech is the wide variety of products claiming to do a wide range of tasks, but that have not been fully tested in the field. This bill proposes to create ATII, within CDFA, to address these concerns. ATII will serve as a clearinghouse for vetting, commercializing and driving adoption of agriculture technologies that qualify for the agriculture technology tax credit. According to the author, approved technologies will be tied to reaching greenhouse gas reduction goals, lower pesticide use, and other public benefits. The tax credit is only available on certification that technology has been deployed and is positively impacting goals.

The committee may wish to consider if CDFA is the best location for ATII. Does CDFA have the staff and expertise to evaluate upcoming technology or will they need to need to hire staff or contract with another organization to fulfill the task of ATTI?

Agriculture Growth Council

The AGC will work to ease regulatory conflicts, create interagency coordination and compliance certainty, while reducing regulatory burdens. AGC planned to do this by creating an interagency council modeled on the Strategic Growth Council with CDFA, Resources, Cal EPA, and others to meet and plan for regulatory alignments that better enables compliance, reduces costs and protects the environment.

The committee may wish to consider adding an AGC advisory committee made up of regulated stakeholders to advise the AGC on regulatory streamlining.

$1.5 million for the Buy California program

In 2001, the Legislature provided $5 million to the Buy California program. This program created a partnership between government and industry to promote consumption of California-grown agricultural products to California consumers, benefiting both public health and the state's economy. The goal of this program is to create a cross-commodity marketing campaign for agricultural products targeted at Californians. The focus is on the concept of "California Grown" to communicate quality and local pride and to prompt increased consumer purchase of California products.

California is the largest agricultural state in the U.S., producing over 400 commodities. It is the sole U.S. producer of many fruits and vegetables. Californians take less advantage of this agricultural bounty than other U.S. citizens, eating less fresh fruits and vegetables than the level recommended by leading health experts.

This appropriation will help the Buy California program promote California Agriculture products.

$45 million for the Statewide Plant Pest Prevention and Management Program (PPPMP)

CDFA is mandated to prevent the introduction and spread of injurious insect or animal pests, plant diseases, and noxious weeds in California. To accomplish this, CDFA implements PPPMP, an ongoing effort by CDFA to protect California's agriculture from damage caused by invasive plant pests. PPPMP is implemented in partnership with a number of different entities, including international trading partners, USDA, CACs, other public agencies, industry groups, and academia.

Currently there are over 1,700 species of all types; vertebrate, invertebrate, plant, and disease, that are in the state or could conceivably be introduced and become problems in the future. Not all of these pests affect California agriculture, but there are quarantines on six agricultural pests covering regions all over the state.

The author states that during the Great Recession, the state reduced funding for pest management programs within state entities like CDFA. This appropriation will help restore some funding to allow PPPMP work to detect and reduce pests throughout the state.

$1.5 million for a CDFA agribusiness regulatory website portal

This bill directs CDFA to develop a website where all regulatory requirements and workflows are available in one stop so that new farmers, or new farm managers, can navigate regulations more easily and efficiently.

Navigating the regulatory process can be confusing and unpredictable, resulting in unexpected costs, time delays, and additional requirements. A regulatory roadmap would assist farmers in planning projects and complying with regulations. Making it easier for individuals and businesses to see what regulations affect them and how various regulations interact could ease some burdens on farms and increase compliance.

$10 million annually to UCANR for applied agriculture research

UCANR is a division of the UC Office of the President. UCANR operates two chief programs: the Cooperative Extension and the Agricultural Experiment Station (AES), which are mandated by the fact that the University of California is a land grant university. UC Cooperative Extension (UCCE) has farm, 4-H, nutrition, family and consumer sciences advisors based in more than 50 county offices throughout California. AES is not a specific place, as the name might imply. It is a program that employs researchers from UC Davis, UC Berkeley, and UC Riverside. These researchers often work with Cooperative Extension specialists and farm advisers. In the UC system many AES researchers are professors. Generally AES provides funding for these professors to carry out research.

AES and UCCE are the nexus between academia and farmers. They conduct field tests in real world situations, get feedback from farmers and ranchers on what works, what is practical and how to adjust farm practices in a way that the farmer can manage. Many advances in agriculture came out of work done by UCCE. The author points out that during the Great Recession, the state reduced funding for agricultural research and development that affected the work of UCANR. This continuous appropriation will ensure that UCANR can continue funding agriculture research.

New Agriculture Technology Course in California’s community colleges

Farms are becoming internet connected and data driven. The job skills to manage the evolving technology for farms are in low supply in California’s existing agricultural employment base, as farms are beginning to require knowledge of applied data science, robotics, and more.

These future farm jobs will be more like technology jobs found in California’s tech-laden urban centers. These jobs will provide new economic opportunities for rural Californians that would not exist without the intersection of agriculture and technology becoming a reality. Regions of the state have seen best practices created by educational institutions to capture agricultural technology employment.

This bill addresses this future job preparedness by requiring the Board of Governors to develop a model Agricultural Business and Technology Program or similar programs. These ag tech programs could be adopted by the CCC districts throughout the California. Not only would this provide students with a career path in ag tech, but also help them stay in their communities with good paying jobs.

In order to prepare younger students for ag and other tech career paths, this bill appropriates $150,000 to Olinga Learning, for the purpose of funding a Wing of Knowledge pilot project. The Wing of Knowledge Initiative aims to empower young people to improve their rural communities. Its approach is to engage them, starting in sixth grade, as partners in processes of participatory action research aimed at bettering the social and economic conditions of their families and communities.

Smart Farms

Smart Farms, sometimes called farms of the future or demonstration farms, typically mean working farms where new technology can be tested. With more ag technology innovations becoming available to assist farming operations through a variety of platforms, there is often a question of viability when it comes to new technologies. Smart farms are able to provide a practical example of how those technologies are used on a farm.

This bill hopes to encourage more smart farms by encouraging the launch of Smart Farms through the community colleges, CSU, UC systems, and/or on state/county fairgrounds, to provide regional agricultural businesses with a real world display of agricultural technology, in practice. According to the author, this can serve the dual purposes of decreasing adoption barriers, and creating career pathways to technology focused agricultural jobs when Smart Farms are associated with community college and other career pathway programs.

Rural internet survey

The Governor's California Broadband Task Force found that providers report that broadband is available to 96% of California residents. Only 4% of the population, or about 1.4 million residents, living in rural and remote area currently do not have access. However, the unserved portion of California is a significant percentage of the state geography. Broadband access for rural and remote areas remains a priority challenge for California.

Furthermore, it is difficult to access Broadband on farms. While a farmer's house may have service, much of the actual farm land has limited or no access to Broadband. This continues to hamper the adoption of ag tech that requires internet access. To address this issue, this bill requires CDFA and CACs to conduct a statewide broadband survey to map on farm broadband gaps in rural communities that pose a hurdle to agricultural technology deployments. A better understanding of where the broadband gaps are located will help focus California's effort to ensure that all Californian have access to broadband.

DOUBLE REFERRAL: Should this bill pass this committee, it will be re-referred to the Assembly Committee on Higher Education.

REGISTERED SUPPORT / OPPOSITION:

Support

Almond Alliance of California

Association of California Egg Farmers

California Association of Wheat Growers

California Association of Winegrape Growers

California Bean Shippers Association

California Grain & Feed Association

California Pear Growers Association

California Seed Association

California State Flora Association

California Warehouse Association

Citrus Mutual

Hartnell Community College District

Pacific Egg & Poultry Association

West Hills Community College District

Opposition

None on file

Analysis Prepared by: Victor Francovich / AGRI. / (916) 319-2084